Welcome to Skatteforsk - Centre for Tax Research's February seminar!
In the second seminar of 2024, we are excited to receive Ole-Andreas Elvik Næss, Adjunct Associate Professor at the Norwegian School of Economics (NHH). He will give a presentation on the paper "Divestment and green voting".
The seminar is open and everyone is welcome to join!
Time: Thursday, 8th of February. Venue: T451, Tower Building, NMBU. Contact Person: Benjamin Gøtestam (benjamin.gotestam@nmbu.no
Title: Divestment and green voting
Abstract: Investing strategies in "brown firms"- those with environmentally detrimental practices- vary, with options including divestment and active engagement (e.g., through shareholder voting). This paper establishes a theoretical framework positing that divestment becomes an equilibrium strategy under two conditions: firstly, a significant proportion of shareholders must favor divestment; secondly, heightened capital costs for brown firms should not diminish shareholder support for divestment. A survey of a representative shareholder group from one of the world's largest investment funds provides evidence supporting the second condition but not the first.
Conversely, the data reveal a stronger shareholder preference for increased fund engagement with brown firms. Furthermore, there is a notable inclination towards supporting environmentally friendly ("green") proposals during shareholder meetings, particularly in the context of oil companies.
It is also possible to join the seminar online using this link. Meeting ID: 374 231 643 006 Passcode: Uyh2XS